Production and Operations Management Test Preparation
Course Introduction
Production and Operations Management focuses on the planning, organizing, and supervising of processes involved in the production of goods and services. This course explores key concepts such as operations strategy, process design, capacity planning, inventory management, quality control, and supply chain management. Students will learn how organizations transform inputs into outputs efficiently and effectively while meeting customer requirements. Emphasis is placed on decision-making tools and techniques that enhance productivity, optimize resource utilization, and improve organizational competitiveness in dynamic business environments.
Recommended Textbook Operations Management 12th Edition by William J. Stevenson
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25 Chapters
2419 Verified Questions
2419 Flashcards
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Page 2
Chapter 1: Introduction to Operations Management
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74 Verified Questions
74 Flashcards
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Sample Questions
Q1) Which of the following principles emphasizes that actions should make the community as a whole better off?
A) The Rights Principle
B) The Fairness Principle
C) The Virtue Principle
D) The Common Good Principle
E) The Utilitarian Principle
Answer: D
Q2) Technology choices seldom affect:
A) costs.
B) productivity.
C) union activity.
D) quality.
E) flexibility.
Answer: C
Q3) The optimal solutions produced by quantitative techniques should always be evaluated in terms of the larger framework.
A)True
B)False
Answer: True
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Chapter 2: Competitiveness, Strategy, and Productivity
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Sample Questions
Q1) Global competition really only applies to multinational organizations.
A)True
B)False
Answer: False
Q2) Which of the following factors would tend to reduce productivity?
A) improvements in workplace safety
B) reductions in labor turnover
C) more inexperienced workers
D) reductions in the scrap rate
E) less variety in the product mix
Answer: C
Q3) Time-based approaches of business organizations focus on reducing the time to accomplish certain necessary activities. Time reductions seldom apply to:
A) product/service design time.
B) processing time.
C) delivery time.
D) response time for complaints.
E) internal audits.
Answer: E
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Page 4
Chapter 3: Forecasting
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164 Flashcards
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Sample Questions
Q1) In order to compute seasonal relatives, the trend of past data must be computed or known, which means that for brand-new products this approach cannot be used.
A)True
B)False
Answer: True
Q2) For new products in a strong growth mode, a low alpha will minimize forecast errors when using exponential smoothing techniques.
A)True
B)False
Answer: False
Q3) Curvilinear and multiple regression procedures permit us to extend associative models to relationships that are nonlinear or involve more than one predictor variable.
A)True
B)False
Answer: True
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5
Chapter 4: Product and Service Design
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Sample Questions
Q1) Which of the following is not true about remanufacturing?
A) Remanufactured products can be sold at lower cost.
B) The process requires mostly unskilled and semiskilled workers.
C) There is less depletion of natural resources.
D) It produces high-quality products easily.
E) Remanufacturing is mainly carried out by small and mid-sized companies.
Q2) A major benefit of computer-aided design (CAD) is the increased productivity of designers.
A)True
B)False
Q3) A disadvantage of standardization is the possibility of standardizing designs too early, which may make them difficult to modify in the future.
A)True
B)False
Q4) The term failure as applied to reliability means that a part or item does not function at all.
A)True
B)False
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6
Chapter 4: Extension: Reliability
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Sample Questions
Q1) Suppose a given control unit fails, on average, every 12,000 hours. It takes an average of 900 hours to repair and reboot this unit. The repair/reboot procedures for this unit are being reconfigured. By how much would average repair/reboot time need to be reduced to increase availability by 5 percent (assuming the control unit's average life remains unchanged)?
A) not more than 200 hours
B) more than 200 hours but not more than 400 hours
C) more than 400 hours but not more than 600 hours
D) more than 600 hours but not more than 800 hours
E) more than 800 hours
Q2) An electrical appliance will not work unless component QK does. Component QK's reliability is 0.95. Every other part of the appliance is 100 percent reliable. What would the reliability of the appliance be if a backup QK were added?
A) .95
B) .9975
C) .9025
D) .9205
E) .9795
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Chapter 5: Strategic Capacity Planning for Products and Services
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Sample Questions
Q1) The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to break even?
A) 1,600
B) 2,400
C) 2,000
D) 1,000
E) 1,500
Q2) The term capacity refers to the maximum quantity an operating unit can process over a given period of time.
A)True
B)False
Q3) According to the reading on restaurant sourcing practices, only fast-food restaurants are able to bring in outsourced foods.
A)True
B)False
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Page 8
Chapter 5: Extension: Decision Theory
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Sample Questions
Q1) The expected monetary value approach is most appropriate when the decision maker is risk neutral.
A)True
B)False
Q2) In a decision-making setting, if the manager has to contend with limits on the amount of information he or she can consider, this __________ can lead to a poor decision.
A) bounded rationality
B) suboptimization
C) risk aversion
D) misspecification
E) complexification
Q3) A tabular presentation that shows the outcome for each decision alternative under the various possible states of nature is called a:
A) payoff table.
B) feasible region.
C) Laplace table.
D) decision tree.
E) payback period matrix.
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Page 9
Chapter 6: Process Selection and Facility Layout
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150 Flashcards
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Sample Questions
Q1) Product layouts can more easily adapt to variations in product requirements than process layouts can.
A)True
B)False
Q2) Heuristic rules are used primarily in which of these types of layouts?
(I) Product
(II) Process
(III) Fixed-position
A) I
B) II
C) I and III
D) I and II
E) II and III
Q3) An advantage of a U-shaped production line is that:
A) it is less compact.
B) communication is reduced among employees.
C) workers are specialists.
D) work assignments are more rigid.
E) it is more efficient than a traditional product layout.
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Page 10
Chapter 7: Work Design and Measurement
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151 Flashcards
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Sample Questions
Q1) Eight instances of a worker doing a task were observed as follows: \[\begin{array} { l
r r r r r r r r }
\text { Observation } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\
\hline \text { Time (seconds) } & 17 & 18 & 15 & 14 & 13 & 15 & 16 & 12
\end{array}\] How many observations would be needed to be 99.74 percent confident that the maximum error is 5 percent of the observed time? Assume that the standard deviation of the task time is two seconds.
Q2) The symbols for operation, storage, transportation, inspection, and delay would usually be found on which type of chart?
A) flow process
B) Gantt
C) simultaneous motion
D) worker-machine
E) delay analysis
Q3) Work sampling provides both quick and accurate estimates of activity times.
A)True
B)False
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Chapter 7: Extension: Learning Curves
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Sample Questions
Q1) According to learning curve theory, the time reduction per unit decreases (improves) as the number of units increases.
A)True
B)False
Q2) A job has an 80 percent learning curve. The second unit required 12 hours to complete. Approximately how many hours will be devoted to the first five units (including those already completed)?
A) 26
B) 36
C) 46
D) 56
E) 66
Q3) Sometimes improvements in labor requirements are more apparent than real because of:
A) fixed costs increasing.
B) automation.
C) mass production.
D) increases in indirect labor.
E) greater precision in estimating the learning rate.
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Page 12
Chapter 8: Location Planning and Analysis
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) Which of the following is not a location option that management can consider in location planning?
A) Expand an existing facility.
B) Add a new location.
C) Relocate from one location to another.
D) Do nothing.
E) All of the choices.
Q2) Consider the following information about sites A, B, and C: \[\begin{array} { l r l }
\text { Site } & \text { FC (annual) } & \text { VC (per unit) } \\
\hline \text { A } & \$ 100,000 & \$ 10 \\
\mathrm {~B} & \$ 120,000 & \$ 8 \\
\text { C } & \$ 150,000 & \$ 7
\end{array}\] For what quantity would you be indifferent between selecting site B or site C?
Q3) A strategy that emphasizes convenience for the customers would probably select a single very large facility.
A)True
B)False
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Chapter 8: Extension: The Transportation Model
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20 Verified Questions
20 Flashcards
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Sample Questions
Q1) Which of the following is the information needed to use the transportation model?
(I) A list of the sources and each one's capacity
(II) A list of the destinations and each one's demand
(III) The unit cost of shipping items from each source to each destination
A) I and II only
B) II and III only
C) I and III only
D) III only
E) I, II, and III
Q2) Which of the following is not information needed to use the transportation model?
A) capacity of the sources
B) demand of the destinations
C) unit shipping costs
D) unit shipping distances
E) All of the choices are necessary.
Q3) The transportation model assumes similar, homogeneous goods.
A)True
B)False
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14
Chapter 9: Management of Quality
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Crosby's concept of "quality is free" means that it is less expensive to do it right initially than to do it over.
A)True
B)False
Q2) The "Control" phase of DMAIC is intended to ensure that:
A) the proper subset of process inputs are monitored.
B) variability reduction is pursued.
C) data analysis is overseen.
D) inputs are closely monitored.
E) improvements are sustained.
Q3) The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is:
A) brainstorming.
B) check sheets.
C) Pareto analysis.
D) cause-and-effect diagrams.
E) fail-safe methods.
Q4) Zero defects requires 100 percent inspection of the final product.
A)True
B)False
Page 15
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Chapter 10: Quality Control
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141 Flashcards
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Sample Questions
Q1) A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are under control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results: \[\begin{array} {r }
{ \text { Measurements } } \\
\begin{array} { l l l l l }
\text { Machine } & \\
\hline \# 1 & 17 & 15 & 15 & 17 \\
\# 2 & 16 & 25 & 18 & 25 \\
\# 3 & 23 & 24 & 23 & 22
\end{array}\end{array}\] What are the x-bar chart three-sigma upper and lower control limits?
A) 22 and 18
B) 23.29 and 16.71
C) 23.5 and 16.5
D) 23.16 and 16.84
E) 24 and 16
Q2) Attribute data are counted, variable data are measured.
A)True
B)False
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Page 16
Chapter 10: Extension: Acceptance Sampling
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Sample Questions
Q1) The quality manager for Graphics, Inc., is concerned about the quality of the lot of several thousand posters which her company printed this week and is now preparing to ship. If the indifference point between complete inspection and shipment without inspection is 12 percent defectives, and she decides to sample 15 posters (n = 15), what is the maximum number of sample defectives (c) for which this lot would be accepted for shipment without further inspection?
A) 0 defectives
B) 1 defective
C) 2 defectives
D) 3 defectives
E) 4 defectives
Q2) Which one of the following would not be a reason for using acceptance sampling?
A) high cost of passing defectives
B) large number of items
C) destructive testing
D) boredom and fatigue that would accompany complete inspection
E) low cost of passing defectives
Q3) If the value for average outgoing quality increases, this means that __________ defective units are being passed on.
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Page 17
Chapter 11: Aggregate Planning and Master Scheduling
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88 Verified Questions
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Sample Questions
Q1) Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity.
A)True
B)False
Q2) Uncommitted inventory is called:
A) available-to-promise inventory.
B) free inventory.
C) safety stock.
D) lead time inventory.
E) obsolete inventory.
Q3) Simulation to produce an aggregate plan:
A) will produce the best plan.
B) is the most widely used technique.
C) is easy to implement.
D) will produce a plan that may not be the best plan.
E) requires a minimum of four iterations to be accurate.
Q4) Linear programming models yield the optimal solution.
A)True
B)False
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Chapter 12: MRP and ERP
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Sample Questions
Q1) Which is true of a net-change system?
A) It is a batch-type system which is updated periodically.
B) It is usually run at the beginning of each month.
C) The basic production plan is modified to reflect changes as they occur.
D) It is used to authorize the execution of planned orders.
E) It indicates the amount and timing of future changes.
Q2) Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, three-period lot-sizing method is used, what will be the quantity of the first planned receipt?
A) 60
B) 100
C) 160
D) cannot be determined
E) none of the choices
Q3) MRP works best if the inventory items have dependent demand.
A)True
B)False
Q4) Project management approaches can help in a conversion to an ERP system.
A)True
B)False
Page 19
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Chapter 13: Inventory Management
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Sample Questions
Q1) In the A-B-C classification system, items which account for 15 percent of the total dollar volume for a majority of the inventory items would be classified as:
A) A items.
B) B items.
C) C items.
D) A items plus B items.
E) B items plus C items.
Q2) Cycle counting can be used in motorcycle inventory control.
A)True
B)False
Q3) In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1 per unit per year will result in an EOQ of:
A) 20.
B) square root of 200.
C) 200.
D) 400.
E) 600.
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Chapter 14: Jit and Lean Operations
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Sample Questions
Q1) A production cell uses 240 pounds of plastic resin each eight-hour day. Resin is transported in drums that hold 100 pounds each. The material is obtained from a nearby supplier, and has a 12-hour cycle time. An efficiency factor of .15 has been assigned to this cell. What is the optimum number of containers to support this operation?
Q2) Although transitioning to a lean system can be a powerful means of improving performance, it is generally thought that using __________ along with lean can lead to even better results.
A) kaizen
B) ERP
C) six sigma
D) JIT
E) jidoka
Q3) The ultimate goal of lean operations is a system characterized by the smooth, rapid flow of materials.
A)True
B)False
Q4) Preventive maintenance will eliminate the need to carry supplies of spare parts.
A)True
B)False
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Chapter 14: Extension: Maintenance
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Sample Questions
Q1) In the broadest sense, preventive maintenance extends back to the installation stage of equipment and facilities.
A)True
B)False
Q2) Breakdown maintenance is _____________; preventive maintenance is
A) reactive; proactive
B) proactive; reactive
C) expensive; inexpensive
D) inexpensive; expensive
E) easy; hard
Q3) The type of maintenance which is periodic in nature is:
A) breakdown maintenance.
B) predictive maintenance.
C) preventive maintenance.
D) corrective maintenance.
E) all of the choices.
Q4) The average time before breakdown of a machine is normally distributed and has a mean of seven weeks and a standard deviation of 1.5 weeks. If breakdown cost averages $2,500 and preventive maintenance costs $500, what is the optimal preventive maintenance interval?
22
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Chapter 15: Supply Chain Management
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Sample Questions
Q1) Our organization can obtain visibility to potential trading partners on the Internet by using:
A) C2C.
B) B2C.
C) B2B.
D) C2B.
E) 2BC.
Q2) Gatekeeping manages the cost of shipping returned goods.
A)True
B)False
Q3) Which of the following is not a goal of supply chain management?
A) fewer suppliers and long-term relationships
B) small lot sizes
C) on-time deliveries
D) lowest possible transportation costs
E) delivery often to the place of use
Q4) In purchasing, one's only ethical obligation is to one's suppliers.
A)True
B)False
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Chapter 16: Scheduling
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Sample Questions
Q1) There are three jobs to be done and three resources with which to do them. Each resource will take a specific time to do each job, as shown in the following table:
\[\begin{array} { c }
{ \text { Machine } } \\
\begin{array} { l c c c }
\text { Job } & \text { A } & \text { B } & \text { C } \\
\hline 1 & 6 & 9 & 4 \\
2 & 4 & 4 & 3 \\ 3 & 8 & 7 & 4
\end{array}\end{array}\] What is the result of the row and column reductions?
Q2) The assignment model seeks an optimum matching of tasks and resources. A)True B)False
Q3) The output of the system cannot exceed the output of the bottleneck operation(s). A)True
B)False
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24
Chapter 17: Project Management
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137 Verified Questions
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Sample Questions
Q1) Consider the following work breakdown structure: \(\begin{array}{cccccc}
&\text { Start }&\text { Finish }&&\text { Duration (Days) } \\
\text { Activity } & \text { Node } & \text { Node } & \text { Optimistic } & \text { Most Likely } & \text { Pessimistic } \\
\hline \text { A } & 1 & 2 & 41 & 50 & 59 \\
\text { B } & 1 & 3 & 54 & 60 & 66 \\
\text { C } & 2 & 4 & 58 & 70 & 82 \\
\text { D } & 3 & 4 & 32 & 41 & 44
\end{array}\) What is the estimated slack time for activity D?
A) 0 days
B) 19 days
C) 20 days
D) 79 days
E) 80 days
Q2) Once a project is approved and underway, project managers are only responsible for effectively managing time and costs which, if done well, will assure project completion on time and on budget.
A)True
B)False
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Page 25
Chapter 18: Management of Waiting Lines
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Sample Questions
Q1) The goal of waiting-line management is to eliminate customer waiting lines.
A)True
B)False
Q2) Consider these data regarding the multiple-server, priority service queuing model:
\[\begin{array} { l l }
\text { Priority } & \text { Average Arrival Rate } \\
\hline \text { High } & 3 \text { per hour (Poisson) } \\
\text { Low } & 5 \text { per hour (Poisson) }
\end{array}\] Service Rate: 2 per hour (Poisson)
Number of Servers: 5
What is the overall average arrival rate?
Q3) A single-channel queuing system has an average service time of 16 minutes per customer, which is exponentially distributed. The manager is thinking of converting to a system with a constant service time of 16 minutes. The arrival rate will remain the same. The effect will be to:
A) increase utilization.
B) decrease utilization.
C) increase the average waiting time.
D) decrease the average waiting time.
E) not have any effect since the service time is unchanged.
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Chapter 19: Linear Programming
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Sample Questions
Q1) The logistics/operations manager of a mail order house purchases two products for resale: king beds (K) and queen beds (Q). Each king bed costs $500 and requires 100 cubic feet of storage space, and each queen bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each king bed is $300 and for each queen bed is $150. What is the maximum profit?
A) $0
B) $30,000
C) $42,000
D) $45,000
E) $54,000
Q2) Given this problem: Maximize \(Z = \$ .30 x + \$ .90 y\)
\[\begin{array} { l }
\text{Subject to:}&2 \mathrm { x } + 3.2 \mathrm { y } \leq 160 \\ &4 \mathrm { x } + 2.0 \mathrm { y } \leq 240 \\
\mathrm { y } \leq 40
\end{array}\] (A) Solve for the quantities of x and y which will maximize Z. (B) What is the maximum value of Z?
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Page 27